Toyota agreed to pay about $1.1 billion to settle a lawsuit over unintended gas-pedal acceleration. The WSJ's Phred Dvorak explains why the news has not affected Toyota shares in Japan.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... me to be over billion dollars ... I'll gas pedal class action lawsuit ... welcome to Asia today I'm unique in ... joining me now to discuss the story is predictable and too cute deputy bureau chief ... Frank thank so much for joining us today ... aam seems like a very big settlements and can bring us up to speed on how the settlement came about ... well it's been in the works for a long time this is to settle and the case from their two thousand and ninety s and ten period ... of unintended acceleration ... and so you can imagine that day it's been in the nation in their many law suits and sit around doing it ... and in fact it's been so widely expected that Toyota would settle ... and that she ate it peers that they've taken a lot of reserves and for the expected settlement ... and and analysts had been ... and ... thinking that this would come for a while so on the one hand yes it's a it's a large figure ... and ... apparently could be ... the largest ... settlement in man for this kind of an automotive industry takes ... on the other hand ... an Ouija I'm not saying much reaction just because it is old ... time because Toyota has already set aside a lot of reserves to cover ... and ... and and also because the markets excited about the things that are going on in Korea ... write on pick up a little bit about how this might impact their earnings going forward ... thank you there will be time to munch earnings intact to me will ... probably take a ... pre-tax and Cha rich ... by it as far as get it you know as I said earlier because they've taken a lot of reserves ... already ... and it should have ... known and a real impact ... on me on the figure is that they're in ... an upright think this ... so when we talk to analysts and they are looking instead ... and and what's happening with the yen ... we choose its strengthening played a bit ... and it ... therefore every ... time I can only give you a yen weakening he did that for every one yen ... and ... of weakening ... carrier that I haven't seen it ... and ... oh and impact and thirty five billion yen on its operating profit so ... the fact that the yen is ... strengthening so much now it's now I think around twenty seven month high ... is seen as ... very and ... is very concrete answer to this tax actually going up ... do you think that this could potentially and give some back to his competitors room to gain more market share as Toyota continues to have problems with is that its index ... the owner ... it's ... not clear ... that there is you know what what what impact there will be on the midget at a ... time ... we think that created dance shoes this time to settle ... because they didn't think there would be ... as much as we get along in a ... corner ... and ... then not to be much impact a reputation ... so that's what we know we've been told is that ... and ... this was a time when they thought they could handed big settlements when I'm having ... I went reputation there ... are the markets reacting to this news this morning ... that is on his up ... I nearly three percent ... and knowing the entire market is up ... and down one morning in London when one a half percent this morning but so too it is outperforming the market ... and again it's largely because ... the yen has strengthened ... and that is those to be very concrete areas earnings ... okay thanks Fran much ... for joining us today and take him ... for more on that story dated WS J dot com ... I'm unique in the Wall Street Journal digital network ...